Banc of America, Others Arrange $2B Term Loan for JSC VTB Bank
JSC VTB Bank (VTB) announced that it signed a $2 billion term loan facility with Banc of America Securities, Bank of China (UK), The Bank of Tokyo-Mitsubishi UFJ, Barclays Bank, BNP Paribas, China Construction Bank (London), Citibank, HSBC Bank plc, J. P. Morgan Limited, Mizuho Corporate Bank, Société Générale, Sumitomo Mitsui Banking Corporation Europe and Wells Fargo Bank joining as mandated lead arrangers and bookrunners and The Bank of New York Mellon as lead arranger. Barclays Bank acted as co-coordinator for the facility and will act as facility agent.
The facility was signed on March 12, 2013. Following a very strong response from international lenders, VTB was able to increase the facility to $2 billion.
The transaction marks the largest syndicated facility by a financial institution in Russia since 2011. The facility is structured as a three-year bullet repayment term loan and has a margin of 150 basis points per annum over LIBOR. The proceeds of the facility will be used for general corporate purposes.
“We are very appreciative of the solid support that we received from participating banks and are very pleased with the transaction. The deal sets the record size and brings in lenders from various geographies thus further extending and diversifying our relationship base in the global banking community. The success of this loan proves our strong reputation in the industry, and we are looking forward to further strengthening of our credit profile internationally,” said Andrey Kostin, VTB’s president and chairman of the management board.
VTB is a Russian universal banking group.